Takara Completes LOI with Gold Bullion to Acquire Castle Silver Mines Inc.
Toronto, March 11, 2015 - Takara Resources Inc. (TSXV: TKK) ("Takara" or the "Company") is pleased to announce that it has signed a Letter of Intent ("LOI") with Gold Bullion Development Corp. ("Gold Bullion") (TSXV: GBB) aimed at acquiring the assets held by Gold Bullion's wholly-owned subsidiary, Castle Silver Mines Inc. ("CSM"). These assets feature the 3,300-hectare Castle Silver Mine Property, a past producer located near the northern Ontario community of Gowganda and 85 km northwest of the historic Cobalt silver mining camp. Under the terms of the non-binding LOI, which establishes the framework for a potential near-term definitive agreement between the two parties, Takara can acquire Castle Silver Mines Inc. in exchange for 10,000,000 units of the Company distributed in equal stages over a 4-year period (each unit would consist of one common share of Takara and one common share purchase warrant). Gold Bullion and Takara have a 30-day due diligence period, following which they have 15 days to elect to enter into a definitive agreement.
Chris Hopkins, Takara's President and CEO, commented: "This proposed transaction gives existing Takara shareholders exposure to an attractive asset, a 33 sq. km land package in a past producing high-grade mineral camp in northern Ontario that clearly has untapped discovery potential. Castle also features 34 mining leases and two licenses of occupation. This can quickly develop into a company-building project in a friendly jurisdiction."
Mr. Frank J. Basa, Gold Bullion President and CEO stated: "Given the recent important discovery of gold and copper in channel sampling and trenching at the past producing Castle Silver Mine, following our high-grade drill intercept of 188.8 oz/ton silver over 10.1 feet (core length) in CA11-08 in 2011, this is a strategic time to leverage this asset for the immediate and longer-term benefit of the shareholders of both Gold Bullion and Takara. The goal here is to create a win-win scenario for both companies. The development of Castle in a prolific mineral area can be fast-tracked through this proposed transaction while Gold Bullion focuses on the exciting next stage of the Granada Gold mine."
Should Takara proceed with the definitive agreement, completion of the transaction would be subject to all requisite regulatory approvals relating to the transaction, including TSX Venture Exchange approval.
Castle Silver Mine Property
Distinct trains of strongly altered, sulphide-rich, rusty, angular boulders were discovered late last year on the Castle Property (see Gold Bullion news release December 8, 2014), just a few hundred meters from 2011 drill hole CA11-08 that returned the exceptionally high-grade silver intersection. CSM continues to investigate the source of these mineralized boulders which may represent a separate gold system at Castle overlooked by previous explorers and operators. The Castle Mine produced over 20 million ounces of silver between 1917 and 1989 when Agnico Eagle, the last operator, closed the mine due to low metal prices. Further information regarding the property can be found in Gold Bullion's 43-101 Technical Report dated August 15 2011 filed on SEDAR at www.sedar.com
Qualified Person
The disclosure of a scientific or technical nature contained in this news release was prepared by William Kerr, P.Geo., Takara's Vice President Exploration and Corporate Development, who is a Qualified Person in accordance with the requirements of NI 43-101.
FOR FURTHER INFORMATION PLEASE CONTACT:
Chris Hopkins, President & CEOTakara Resources Inc.
(416) 786-9793
chopkins@takararesources.com<
Statement Regarding Forward Looking Information
Certain information contained in this news release, including any information relating to the proposed transaction and Takara's future financial or operating performance may be deemed "forward-looking". These statements relate to future events or future performance and reflect Takara's expectations regarding the transaction, and the future growth, results of exploration, business prospects and opportunities of Takara. These forward-looking statements are subject to a variety of risks and uncertainties that are identified and disclosed. Although Takara believes that the forward-looking information contained in this news release are based on reasonable assumptions, readers cannot be assured that actual results will be consistent with such statements. Accordingly, readers are cautioned against placing undue reliance on forward-looking information. Takara expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, events or otherwise, except in accordance with applicable securities laws.
The TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
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